process to handle payment in advance

[Former Member]

Hi All,

Please suggest a best solution to implement the below scenario from the Biz.

We would like to get suggestions for a process to handle payment in advance.

Today our process is as follows:

1. The sales order is created in VA01. A delivery block is applied in the order.

2. A proforma invoice is created with reference to the sales order. This proforma is sent to the customer. It is with reference to the proforma number the customer will pay us in advance.

3. The proforma is also sent to our central invoice dept as information.

4. The customer pays us in advance.

5. We are notified by our invoice dept. that money have been received.

6. We remove the delivery block and ship the goods the customer.

7. We create the invoice from the delivery. We notify our invoice dept. with the invoice number.

8. Our invoice dept then books the money received from customer for the proforma towards the real invoice.

The problem with this process is that its involved a lot of manual work keeping track of when money have been received and then to book the money with the real invoice.

What is best practice for this kind of process?

Awaiting for your responses,

Cheers,

Anil.

[Former Member · Accepted solution]

Hi Experts,

Awaiting your responses.

Cheers,

Anil.

[jpfriends079 · Accepted solution]

Hello,

To handle this in Standard way,

- you need to have header billing plan, if applicable to whole document or item billing plan, if its item specific.

- you can have to milestone

1. advance - (instead of pro-forma invoice, a std billing doc type FAZ is used to advance payment request. B'coz you need some account doc number to clear your advance payment received from customer. If you keep that payment idle in the system, then during credit check there can be issue. if this customer is frequently in transaction the you and customer need to know for which sales order you have received the payment. And Condition type AZWR-Down Pay./Settlement is used in pricing procedure).

2. final. You will not be able to create this till all blocks are removed.

Refer following links for config steps reference:

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Thanks & Regards

JP